ABIOMED INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ABIOMED INC is extremely liquid. Currently, the Quick Ratio is 4.86 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 51.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement

Q3 FY17

Q3 FY16

Net Sales ($mil)

154.02

114.67

EBITDA ($mil)

48.13

27.36

EBIT ($mil)

45.35

25.83

Net Income ($mil)

13.45

15.43

Balance Sheet

Q3 FY17

Q3 FY16

Cash & Equiv. ($mil)

301.25

240.71

Total Assets ($mil)

719.6

500.96

Total Debt ($mil)

0.0

16.52

Equity ($mil)

632.48

417.38

Profitability

Q3 FY17

Q3 FY16

Gross Profit Margin

85.58

84.78

EBITDA Margin

31.25

23.85

Operating Margin

29.45

22.52

Sales Turnover

0.76

0.83

Return on Assets

12.53

9.62

Return on Equity

14.26

11.55

Debt

Q3 FY17

Q3 FY16

Current Ratio

5.6

5.66

Debt/Capital

0.0

0.04

Interest Expense

0.0

0.0

Interest Coverage

0.0

0.0

Share Data

Q3 FY17

Q3 FY16

Shares outstanding (mil)

44.27

43.51

Div / share

0.0

0.0

EPS

0.29

0.34

Book value / share

14.29

9.59

Institutional Own %

n/a

n/a

Avg Daily Volume

381295.0

341708.0

Valuation

BUY. ABIOMED INC's P/E ratio indicates a significant premium compared to an average of 115.38 for the Health Care Equipment & Supplies industry and a significant premium compared to the S&P 500 average of 25.66. For additional comparison, its price-to-book ratio of 20.62 indicates a significant premium versus the S&P 500 average of 3.28 and a significant premium versus the industry average of 5.73. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, ABIOMED INC proves to trade at a premium to investment alternatives within the industry.

Price/Earnings

1

2

3

4

5

premium

discount

Price/Cash Flow

1

2

3

4

5

premium

discount

ABMD 148.77

Peers 115.38

ABMD 75.12

Peers 46.03

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ABMD is trading at a significant premium to its peers.

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ABMD is trading at a significant premium to its peers.

Price/Projected Earnings

1

2

3

4

5

premium

discount

Price toEarnings/Growth

1

2

3

4

5

premium

discount

ABMD 91.91

Peers 32.67

ABMD 1.53

Peers 0.78

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.